Both let your business make and take calls over the internet, and both can give you one number that follows your team anywhere. So should you turn Microsoft Teams into your phone system, or run a dedicated hosted phone system alongside it? The right answer comes down to how your business actually uses the phone, and for plenty of businesses it is a bit of both.
The quick version
Microsoft Teams Phone adds proper phone calls to the Teams app you may already use all day. A hosted phone system is a dedicated cloud phone platform built around call handling, with desk phones, queues and reception tools. If your team lives in Teams and calls are a moderate part of the day, Teams Phone is tidy and familiar. If calls are the heart of your business, a front desk, a sales floor, a busy reception, a hosted system is built for exactly that.
What is Microsoft Teams Phone?
Teams Phone turns Microsoft Teams into a telephone system by connecting it to the public phone network, so you can dial out and receive external calls from the same app you use for chat and meetings. There is no separate dialler to learn and no second app to open: calls, chat and video all live in one place. It suits businesses already standardised on Microsoft 365 who want to avoid juggling tools.
What is a hosted phone system?
A hosted phone system is a cloud-based phone platform, sometimes called hosted VoIP, that runs your telephony without a physical box in the cupboard. It gives you desk handsets and softphone apps, plus the call-handling features a busy business leans on: auto-attendants (“press 1 for sales”), call queues, hunt groups, call recording and reporting. It is designed first and foremost around answering and routing calls well.
| Microsoft Teams Phone | Hosted phone system | |
|---|---|---|
| Best for | Teams-centric, collaboration-led businesses | Call-heavy, customer-facing businesses |
| Where you call from | The Teams app you already use | Desk phones plus mobile and desktop apps |
| Call handling | Good for everyday calls | Rich queues, IVR, reporting, wallboards |
| Reception / front desk | Workable | Purpose-built |
| Already on Microsoft 365? | Natural fit | Works alongside it |
| Non-Teams staff | Less ideal | Handsets suit everyone |
When Teams Phone is the better fit
- Your team already works in Teams and Microsoft 365 all day.
- Most communication is internal, with a moderate volume of external calls.
- You are hybrid or remote and want calls, chat and meetings in one app.
- You would rather not run a separate phone platform.
When a hosted phone system wins
- Calls are central: reception, sales, support or bookings.
- You need call queues, IVR menus, recording and detailed reporting.
- You have staff who want a proper desk phone, not an app.
- You are in retail, hospitality or trades, where a handset by the till or counter matters.
A simple rule of thumb: if your business mostly collaborates, lean towards Teams Phone. If your business mostly answers calls, lean towards a hosted phone system. If it does both, you do not have to choose, and that is where most businesses land.
You do not always have to pick one
The two are not mutually exclusive. Using an approach called Direct Routing, a full telephony platform can be connected into Teams, so your people can call from Teams while the business keeps the advanced call handling, recording and resilience of a dedicated system. That hybrid route gives collaboration-led staff the Teams experience and customer-facing teams the tools they need, on one joined-up setup.
Frequently asked questions
Is Microsoft Teams Phone a full phone system?
It is a genuine phone system for everyday calling from within Teams, with voicemail, transfers and auto-attendants. For heavy call handling, deep queues, wallboards and detailed reporting, a dedicated hosted platform, or a hosted platform connected to Teams, goes further.
Can I keep my existing phone number?
Yes. Your existing business numbers can usually be ported to either Teams Phone or a hosted phone system, so you keep the numbers your customers already know.
Do I need desk phones with Teams Phone?
No. Teams Phone works through the app on a computer or mobile, with a headset. You can add compatible desk phones if some staff prefer a handset, which is one reason businesses with a front desk often prefer a hosted system.
Which is cheaper, Teams Phone or hosted VoIP?
It depends on your Microsoft licensing, how many users need calling and which features you need. Teams Phone can be cost-effective if you are already well into Microsoft 365; a hosted system can be better value where call handling and handsets matter. We work the numbers for your specific setup.
Can Teams do call queues and an auto-attendant?
Yes, Teams Phone includes call queues and auto-attendants that suit many businesses. If you need advanced routing, live wallboards and detailed call analytics, that is where a dedicated or connected hosted platform earns its place.
How Synergy Max helps
We are not tied to one answer, so we start with how your team actually works and the calls you actually make. If Teams is your world, we set up calling inside Microsoft Teams properly. If calls are your lifeblood, we build a hosted phone system around them, and where it helps, a contact centre setup. If you want the best of both, we connect a full platform into Teams. For more on the Teams side, see our guide to making calls inside Microsoft Teams.